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OCR Page 1 of 53PHW
THE PRESIDENT HAS SEEN
THE WHITE HOUSE
ACTION
WASHINGTON
November 9, 1973
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Santa Barbara Channel Oil Leases
Background
About eighteen months ago you concurred in the decision of the
Secretary of the Interior to suspend production from off-shore
oil leases in the Santa Barbara Channel. This decision was
based on the judgment that the very heavy and vocal public reac-
tion against continued production in that area, which came as a
result of the major oil spill that befouled many Southern Cali-
fornia beaches, if disregarded, would set both local and national
opinion strongly against further development of oil and gas
reserves on the outer continental shelf. The Administration
thus submitted in the spring of 1972 legislation which would
terminate the thirty-five leases in the Santa Barbara Channel,
create in that area a National Energy Reserve, permit produc-
tion of oil from Elk Hills to be used to pay off the oil companies
claims for damages as a result of the lease terminations, and
permit exploration of Naval Petroleum Reserve No. 4 in Alaska.
This legislation has never excited significant support in the
Congress, but the litigation against the Government by the oil
companies is nearing final judgment in their favor.
Issue
New hearings have been scheduled in the Congress for Tuesday,
November 13, on our Santa Barbara bill. In light of the energy
emergency, and the approaching judgment which the oil companies
are about to receive from the courts, we need a decision as to
whether the Administration should change its position with regard
to the leases and the Santa Barbara legislation.
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